Women and Retirement Planning: Part II

Women face special challenges when planning for retirement. In this blog series we will explore the challenges and provide tips and resources for women as they take the next steps in their retirement planning journey.

Save as much as you can—you have many options

If your employer offers a retirement savings plan, such as a 401(k) or a 403(b), join it as soon as possible and contribute as much as you can. It's easy to save because your contributions are deducted directly from your pay, and some employers will even match a portion of what you contribute. If your employer offers a pension plan, find out how many years you'll need to work for the company before you're vested in, or own, your pension benefits. Women struggling to balance work and family sometimes shortchange their retirement savings by leaving their jobs before they become vested in their pension benefits. Keep in mind, too, that because your pension benefits will be based on your earnings and on your years of service, the longer you stay with one employer, the higher your pension is likely to be.

Most employer-sponsored plans allow you to choose from several investment options (typically mutual funds). If you have many years to invest or you're trying to make up for lost time, give special consideration to growth-oriented investments such as stocks and stock funds. Historically, stocks have outperformed bonds and short-term instruments over time, although past performance is no guarantee of future results. However, along with potentially higher returns, stocks carry more risk than less volatile investments. A good way to get detailed information about a mutual fund you're considering is to read the fund's prospectus. It includes information about the fund's objectives, expenses, risks, and past returns. A financial professional can also help you evaluate your retirement plan options.

To view the complete white paper "Women and Retirement Planning" please click here.

Copper Leaf Financial develops a customized wealth management (financial) plan designed to integrate every aspect of your financial life. This is "true wealth management" - a holistic, all-encompassing approach that goes beyond just investment advice. Call us today at (802) 878-2731 to schedule a strategy session and begin building your road map to financial success.

 

Pictured above: John W. Davis, CPA, CFP, CVA, CEPA, Managing Partner and client.